Rake was international chairman at the time and instrumental in persuading the US authorities to issue a heavy fine rather than go for a criminal prosecution which had the potential to sink the firm.

At the time of the Enron episode, Rake was also charged with heading the project to bring the remains of collapsed firm Andersen into the KPMG fold. A couple of units round the world came on board, but after legal advice the decision was made not to push ahead with the UK operation. Rake’s always maintained his disappointment that it had not gone ahead, but could you call it a wrong decision? Cautious yes, but that surely was out of concern for the rest of the firm.

So there’s your man and now he’s chairman of British Telecom. He’s been on board for roughly four weeks and what have they got? Well, Rake is a man who knows what it’s like to be in the thick of it. He’s gone head to head with regulators and judicial authorities. He’s argued and battled at the highest levels.

He knows what tough opposition can be like and he knows how big organisations function. What’s more, when it comes to corporate governance, recent experience means he could probably write the book.

And corporate governance was never more high profile than it is at the moment. Press, public, investors, analysts ­ none of them were ever as focused on these issues as they are now.

That perhaps is what makes Sir Mike such a good acquisition. The City knows him and what he stands for. You can trust a man who has dealt with the worst nightmare he could imagine and lived to tell the tale. Rake is a survivor who emerges with his reputation intact. The City likes nothing better than that.

Gavin Hinks is editor of Accountancy Age